New Delhi, Mar 18 (UNI) The Supreme Court on Tuesday took serious note of allegations that various public works contracts in Arunachal Pradesh were awarded to firms linked to Chief Minister Pema Khandu's family members.
A Bench comprising Chief Justice of India (CJI) Sanjiv Khanna, Justice PV Sanjay Kumar, and Justice KV Viswanathan directed the Union Ministry of Finance and the Union Ministry of Home Affairs to submit a detailed report clarifying the allegations.
“We need a clear-cut answer on who the contracts were awarded to and the process followed. If tenders were not called, it must be explicitly stated. Both ministries must provide clarity on the matter,” the Bench observed.
The Court also sought a similar report from the Government of Arunachal Pradesh and the Comptroller and Auditor General of India (CAG). It directed the state government to furnish details of the awarded contracts, particularly those mentioned in the plea, including contracts given to respondents 4 to 6. The CAG was instructed to provide contract-wise details, identifying the recipients.
The matter has been listed for the next hearing on July 21.
The Court was hearing a Public Interest Litigation (PIL) seeking a CBI or Special Investigation Team (SIT) probe into the alleged favouritism in awarding government contracts.
Appearing for the petitioner, Advocate Prashant Bhushan, representing the Save Mon Region Federation, argued that the contracts were being allocated unfairly.
“The state is being run like a private limited company. Contracts worth hundreds of crores have been awarded to the Chief Minister’s wife’s company, his cousin’s company, and other close associates,” Bhushan submitted.
In response, the Arunachal Pradesh government’s counsel dismissed the PIL as an abuse of legal process, asserting that the CAG report found no irregularities and that the state was following due process. The government further alleged that the petitioners were politically motivated and opposed to development in the region.
However, the Supreme Court insisted that the Union Ministries must file their responses in the matter.
According to the petition, government contracts have been awarded to firms owned by Khandu’s family members and associates, suggesting favouritism and a conflict of interest.
The plea highlights that M/s Brand Eagles, a construction company owned by Khandu’s wife, has received multiple government contracts, despite the apparent conflict of interest. The petitioner claims that during Pema Khandu’s father, late Dorjee Khandu’s tenure as CM, the same firm—then under Pema’s ownership—was awarded contracts without a tender process.
Additionally, Dorjee Khandu’s second wife, Rinchin Drema, and his nephew, Tsering Tashi, have been named as respondents. Tashi, who serves as the MLA for Tawang District, owns M/s Alliance Trading Co., which, according to the plea, has been awarded numerous government contracts in violation of the Prevention of Corruption Act and the Code of Conduct for Ministers.
The Supreme Court will examine the responses from the concerned authorities before proceeding further.
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